The New York City Council voted Wednesday to freeze new vehicle licenses for one year while the city studies ways of reducing traffic congestion, among other steps.Mayor Bill de Blasio, who has championed the measures, is expected to sign the legislation in the coming weeks.Council members approved a package of bills after months of protests from taxi drivers and others in favor of them and a campaign by the ride-hailing companies urging customers to oppose the bills.The firms warned that the cap would lead to reduced service in the outer boroughs and to higher fares at a time when the city’s subway and bus systems are struggling.“The city’s 12-month pause on new vehicle licenses will threaten one of the few reliable transportation options while doing nothing to fix the subways or ease congestion,” a spokeswoman for Uber, Danielle Filson, said in a statement.Ms. Filson added, “Uber will do whatever it takes to keep up with growing demand.”Joseph Okpaku, vice president of public policy for Lyft said, “These sweeping cuts to transportation will bring New Yorkers back to an era of struggling to get a ride, particularly for communities of color and in the outer boroughs.”

BTW: I can hear Murray Rothbard cackling at the idea that the suspension is to give the city time to study traffic congestion. As if there was no traffic congestion before Uber and Lyft and that a government central planning group could come up with a sound solution to traffic congestion.

Andrew Galambos defined a traffic jam as the private sector meeting up with the public sector.